EigenLayer has introduced a crucial update for its Ethereum re-staking protocol. The release of ELIP-002 brings a penalty system, also known as “Slashing.”
In this update, two great features will be included: Unique Stake and Operator Sets, which are about to allow Automated Validator Services to penalize such operators that fail to commit, conduct a calculation error, or disrupt the services.
The EigenLayer team announced the launch on its forum, referring to ELIP-002 as the next big step in improving the protocol. The release is part of what they call “ELIP-mas,” an event celebrating the ongoing improvements to EigenLayer.
The new penalty mechanism in EigenLayer
This proposal focuses on bringing more transparency to the protocol by describing a system to penalize operators for their misbehavior. Slashing is the “stick” to the “carrot” in EigenLayer’s Reward v2 system. Thus, AVSs will be able to reward operators for their correct execution of services and penalize them in case of failure to meet certain standards.
Slashing Mechanism: The slashing mechanism penalizes operators for violating their commitments. Examples include calculation errors, liveness failures, or other types of failures occurring at the operator level.
Introduction of Unique Stake: Due to Unique Stake, AVS can track each operator’s stake independently. It is easy to identify and penalize certain operators for failing to deliver what is expected. Meanwhile, the Operator Sets are groupings of operators based on their behavior or performance and allow for enforcing penalties on a larger scale when needed.
Community feedback encouraged for ELIP-002
The two new features will make it more difficult to violate commitments made between the AVS and users. The intention of this would be to provide incentives to operators to make the system more reliable.
Moreover, EigenLayer calls on the community to go through ELIP-002 for comments and feedback. The team is looking forward to receiving diverse opinions to refine their proposal so that it truly will meet users’ expectations.
This open call for feedback is a testimony to the continued effort this protocol is investing in, aimed at constant improvement of the ecosystem by encouraging full participation from its community.
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